In an age where cyberattacks are becoming more frequent — and more damaging — PAK Programs is taking a proactive step to protect the alcoholic beverage industry. The specialty insurer, long known for serving breweries, wineries, and beverage distributors, has unveiled a suite of enhanced cyber coverages aimed at helping businesses respond to and recover from a growing array of cyber threats.

Addressing an Escalating Risk

Cybercrime is no longer confined to tech companies or financial institutions. Food and agriculture businesses, including alcoholic beverage manufacturers, are increasingly being targeted by cybercriminals. From ransomware to data breaches, these attacks can result in major disruptions, financial loss, and reputational damage.

PAK Programs’ expanded cyber offerings are designed to meet this moment. Their updated coverage now includes:

• Data Compromise Response Expenses
• Cyber Extortion Protection
• Privacy Incident Liability
• Network Security Liability
• Reward Payments for information leading to the identification of cybercriminals

These new additions provide policyholders with critical tools and financial support to minimize damage, recover faster, and stay resilient in the face of digital threats.

Why Cyber Protection Matters for Beverage Producers

“Evolving technologies such as artificial intelligence (AI) are becoming more sophisticated and accessible to bad actors, increasing the risk of cybercrime for businesses,” said Larry Chasin, CEO of PAK Programs. “For alcoholic beverage manufacturers and distributors, a cyber incident can lead to a breach of personal information, extensive business interruption, substantial financial losses, and more.”

The goal of the enhanced cyber suite is to give business owners peace of mind, knowing they have access to not only robust coverage but also the industry-specific expertise PAK Programs is known for.

A Legacy of Industry-Focused Coverage

For nearly three decades, PAK Programs has delivered insurance solutions tailored to the unique needs of the alcoholic beverage industry. The enhanced cyber coverage joins a broad portfolio that includes:

• Business property and equipment insurance
• Liquor liability
• Farm liability
• Pollution liability
• Employment practices liability

By bundling cyber protection with these specialized coverages, PAK Programs offers a comprehensive risk management solution for businesses in the beverage space.

Learn More

To explore the full range of cyber coverage options and learn how PAK Programs supports beverage manufacturers and distributors with customized protection, visit pakprograms.com.

About Pak Programs PAK Programs is a leader in the design, administration and marketing of customized insurance programs for wineries and vineyards, breweries, wine and liquor retailers, cideries, meaderies, distilleries, and liquor and wine importers and distributors. Founded in 1996, PAK Programs combines a wealth of experience and expertise to form a dedicated team of specialists and offers the financial strength of partner Great American Insurance Companies with their A.M. Best Rating of A+ (Superior). Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.  

UnitedHealth Group, one of the most powerful forces in American health care, was rocked on Tuesday, May 14, by the sudden resignation of its chief executive officer, Andrew Witty. The company cited “personal reasons” for his departure and announced that Stephen Hemsley, current executive chairman and former CEO, will step back into the top role effective immediately.

Financial Outlook Withdrawn Amid Cost Concerns

In addition to the leadership change, UnitedHealth Group withdrew its financial forecast for the remainder of 2025, citing unexpectedly high medical costs. The company stated that it anticipates a return to growth in 2026. Following the announcement, UnitedHealth Group’s stock fell by more than 17 percent. This adds to a broader downward trend that began in April after the company reported quarterly earnings below market expectations, resulting in a near 50 percent decline in stock value over the past month.

Recent Events Affecting the Company

The company has recently experienced multiple high-profile challenges. In December 2024, Brian Thompson, then CEO of UnitedHealthcare, was killed in Manhattan. The suspect, Luigi Mangione, was arrested five days later and has pleaded not guilty to the murder charge. Authorities stated that Mangione was not a customer of UnitedHealthcare and had been carrying a written statement criticizing the health care industry at the time of his arrest.

Following the incident, Tim Noel, a longtime employee of UnitedHealthcare, was appointed as Thompson’s successor in January 2025.

The company has also been the target of a cyberattack affecting its payment systems.

Leadership and Background

Andrew Witty joined UnitedHealth Group as CEO in 2021. Before that, he was the chief executive of GlaxoSmithKline and served as chancellor of the University of Nottingham from 2013 to 2017. In a published opinion article after Thompson’s death, Witty acknowledged issues within the health care system and affirmed UnitedHealth Group’s mission to improve it.

UnitedHealth Group operates across multiple sectors of the U.S. health care system. Its primary businesses include UnitedHealthcare, the health insurance arm, and Optum, which manages a large network of physicians, clinics, and pharmacy services. In late 2024, the U.S. Department of Justice and four Democratic attorneys general filed an antitrust lawsuit against the company to prevent its planned $3.3 billion acquisition of Amedisys, a home health care provider.

In Summary

Andrew Witty’s resignation marks a significant leadership change at UnitedHealth Group during a period of financial uncertainty and organizational challenges. With Stephen Hemsley reassuming the CEO role, the company faces ongoing scrutiny and strategic decisions in a complex health care landscape.

Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

Revau Advanced Underwriting has taken a bold leap forward with the announcement of a transformational merger involving Brazos Specialty Risk Insurance and Twenty Mile Insurance Services. This strategic move, unveiled on May 12, 2025, significantly enhances Revau’s presence in the United States and sets the stage for its continued expansion across North America.

Strengthening a North American Specialty Insurance Powerhouse

Montreal-based Revau, a prominent managing general agent (MGA) in Canada’s property and casualty insurance market, has partnered with two high-performing Texas-based MGAs — Brazos and Twenty Mile. Brazos brings deep expertise in specialty trucking insurance, while Twenty Mile offers a strong foothold in construction-related liability solutions. Together, they form a unified entity with expanded operational capabilities and geographic reach.

This merger positions Revau as a pre-eminent player in North America’s specialty insurance market, leveraging the combined group’s underwriting excellence, technological infrastructure, and market specialization.

Uniting Data-Driven Capabilities with Industry Expertise

At the core of the merger is a shared commitment to innovation and data intelligence. Brazos and Twenty Mile contribute robust, data-rich underwriting frameworks, which Revau will amplify through its advanced analytics platform and digital infrastructure. This integration provides:

• Deeper insight into risk, customer behavior, and market trends
• Faster decision-making through real-time, data-informed intelligence
• Innovative product development by identifying untapped opportunities
• Operational efficiency that reduces costs and boosts productivity

This new data ecosystem is expected to generate smarter underwriting, enhance claims operations, and support scalable growth.

Leadership Continuity and Cultural Synergy

Key to the merger’s success is the integration of leadership. Tom Spitalny (President of Brazos) and Christopher Polk (President of Twenty Mile and CEO of both MGAs) will remain in place and become shareholders in Revau as part of a cash-and-equity structure. Together with Revau’s executive team, they’ve already launched collaborative efforts to align underwriting, claims, technology, and company culture.

By retaining the expertise and relationships cultivated by Brazos and Twenty Mile, Revau ensures continuity in service quality and local market knowledge.

A Defining Milestone in Revau’s Growth Journey

This is the eighth — and most significant — transaction for Revau since its 2020 partnership with private equity firm Novacap. It exemplifies Revau’s ambition to evolve from a domestic MGA into a continental force capable of delivering customized insurance solutions at scale.

President and CEO Jean-François Raymond emphasized the milestone, stating, “We are thrilled to collaborate with such an experienced and talented group, building a strong partnership model that delivers value for all stakeholders and sets the stage for future success.”

Looking Ahead

This merger signals more than just expansion — it reflects a shared vision for redefining specialty insurance through technology, data, and partnership. As the integration unfolds, brokers, carriers, and policyholders across North America can expect enhanced capabilities, deeper insights, and greater access to innovative insurance solutions.

Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com. 

Hub International Limited has announced a $1.6 billion minority equity investment, bringing its enterprise valuation to $29 billion. This marks the highest valuation to date for a private insurance brokerage. The funding round was led by funds and accounts managed by T. Rowe Price Investment Management, Inc., Alpha Wave Global, and Temasek. Both new and existing investors participated in the round.

Decade of Growth and Strategic Investment

The new valuation is the latest in a series of increases reflecting Hub's strategic growth over the past decade. Since 2013, when Hellman & Friedman (H&F) first invested in the company at a $4.4 billion valuation, Hub has consistently grown its enterprise value. Altas Partners’ 2018 minority investment coincided with a $10 billion valuation, followed by a $23 billion valuation in 2023 with Leonard Green & Partners (LGP). During the same timeframe, Hub’s annual revenue rose from $1.1 billion to $4.8 billion as of 2024.

Role of Acquisitions in Expansion

A significant contributor to this growth has been Hub’s acquisition strategy. In just the past month, the company has added multiple firms to its portfolio. These include:

• DeMarie Insurance: A Florida-based agency with expertise in coastal property and small business insurance.
• Guru of Insurance: A Texas-based digital insurance agency focused on online distribution.
• AGP: A Midwest commercial lines brokerage with a strong regional footprint.

These acquisitions align with Hub’s strategy of expanding through targeted purchases that enhance specialization and regional presence.

Utilization of Funds and Shareholder Structure

Proceeds from the investment will support continued mergers and acquisitions, debt reduction, and other corporate initiatives. These initiatives are part of Hub’s Liquid Private Placement (LPP) program, launched in 2023 with LGP’s involvement. The LPP provides liquidity for institutional shareholders without requiring secondary sales. In this latest round, limited share sales indicate the majority of funds will be directed toward growth initiatives.

Hub’s ownership structure remains unchanged. H&F retains a controlling interest, while Altas Partners and LGP maintain their minority stakes and board representation. Hub’s management team also holds a substantial equity interest.

Advisory and Legal Support

Morgan Stanley and Goldman Sachs served as financial advisors on the transaction, which is expected to close by the end of May 2025. Simpson Thacher & Bartlett LLP provided legal counsel.

About Hub International

Founded in Chicago, Hub International is recognized as the fifth-largest insurance broker globally. The firm focuses on serving middle-market clients and has built a reputation for industry specialization, risk management solutions, and strategic growth through innovation and acquisitions.

Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

On May 12, U.S. President Donald Trump signed an executive order that aims to reduce the cost of prescription drugs in the United States by aligning prices with those paid in other developed countries. The move introduces several directives to federal agencies and pharmaceutical companies, outlining aggressive pricing targets and strategies intended to make medications more affordable for American consumers.

Key Provisions of the Executive Order

• “Most Favored Nation” Pricing Model
  The order instructs drugmakers to lower U.S. drug prices to match the lowest price available in comparable countries. Companies have 30 days to make significant progress toward this goal. If not, the administration plans to pursue additional measures.

• Potential Tariffs and Import Strategies
  President Trump announced that if domestic prices remain above international levels, the administration may impose tariffs on pharmaceuticals. The order also includes provisions to consider importing drugs from other developed countries and implementing export restrictions.

• Direct-to-Consumer Purchasing Programs
  The administration will explore programs allowing consumers to purchase medications at the same prices paid in other countries. This includes a directive to the Department of Commerce and other agencies to examine the export of pharmaceutical products and ingredients.

Industry and Market Response

• Market Rebound
  After an initial decline in premarket trading, pharmaceutical stocks rose following the announcement. Investors reacted positively due to the lack of immediate enforcement mechanisms in the order. Companies like Merck & Co, Pfizer, Gilead Sciences, and Eli Lilly saw gains ranging from 2.9% to 7.1%.

• Industry Criticism
  Trade groups expressed strong opposition. Stephen Ubl, CEO of the Pharmaceutical Research and Manufacturers of America (PhRMA), warned that the order could threaten innovation and reduce access to treatments. He attributed high U.S. drug prices to foreign underpayments and the role of intermediaries.

Legal and Regulatory Considerations

• Potential Legal Challenges
  Legal experts anticipate litigation over the order’s reach, especially regarding drug importation, which may exceed statutory limits. Challenges are expected to intensify if enforcement actions begin to materialize.

• Federal Trade Commission (FTC) Involvement
  The order also empowers the FTC to investigate and enforce actions against anti-competitive practices in the pharmaceutical industry. Practices under scrutiny may include agreements with generic manufacturers to delay market entry of lower-cost alternatives.

• Ongoing Antitrust Focus
  The FTC has a long-standing role in overseeing healthcare market competition. The agency is expected to coordinate with other federal bodies and hold public sessions to gather insights on pharmaceutical pricing practices.

Background and Context

The United States has historically paid higher prices for prescription drugs compared to other developed nations. The executive order represents a renewed attempt by the Trump administration to address these disparities following earlier efforts that were blocked by the courts. The current move is positioned as part of a broader agenda to control inflation and reduce costs for American households.

President Trump highlighted anecdotal evidence of pricing discrepancies during the announcement, including a comparison of the cost of a weight-loss injection between London and the U.S. He emphasized the principle that all countries should pay equal prices for medications.

Next Steps

The administration plans to monitor pharmaceutical companies’ progress over the next month. If price reductions are not achieved voluntarily, the government will pursue rulemaking and other regulatory actions to enforce compliance.

The full impact of the executive order will depend on the development and execution of specific regulatory measures, the outcomes of any legal proceedings, and responses from the pharmaceutical industry and international stakeholders.

Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

A growing segment of the insurance market is emerging in response to increased gun ownership and expanded self-defense laws across the United States: self-defense insurance. Sometimes referred to as "concealed carry insurance" or "gun liability insurance," these policies are designed to assist policyholders who use force in self-defense incidents, covering certain legal and financial costs.

What Is Self-Defense Insurance?

Self-defense insurance policies typically offer legal support for individuals who use a firearm or other force in a claimed act of self-defense. Covered services often include:

• Criminal defense attorneys
• Civil litigation defense
• Bail bond reimbursement
• Payment for expert witnesses
• Crime scene cleanup (in some policies)
• Coverage for accidental discharge
• TSA violation expenses
• Protection extended to spouses and minor children

Some plans offer tiered membership levels, ranging from $11 to nearly $60 per month. These tiers may provide different levels of training, support, and coverage. Coverage typically ceases if the policyholder is convicted of a violent crime, and in some cases, legal fees and other benefits may be subject to reimbursement.

Major Providers and Membership Growth

Two of the largest providers in the field are the U.S. Concealed Carry Association (USCCA) and U.S. Law Shield. Together, they serve a large and growing customer base:

• USCCA reportedly had 860,000 members as of 2024.
• U.S. Law Shield, which began in Texas in 2009, now operates in 46 states and serves between 600,000 and 700,000 members, with an additional 300,000 to 400,000 dependents included on plans.

Other providers include CCW Safe and Armed Citizens’ Legal Defense Network, which reported having over 22,000 members by the end of 2024.

Industry representatives estimate the total number of Americans holding some form of self-defense insurance has reached around two million. Many providers say their memberships have doubled in the past five years.

Market and Regulation

The rise in self-defense insurance coincides with an increase in firearm background checks and the passage of laws like "stand your ground" statutes, which expand legal protections for individuals using force in self-defense. Providers often market their services alongside firearm training programs, emphasizing the potential legal and financial consequences of self-defense incidents.

Several companies classify their offerings not as insurance but as prepaid legal plans or membership services. This classification means they are regulated differently depending on the state. Some states—such as New York and Washington—have taken legal action to stop the sale of these products, arguing they may violate laws prohibiting coverage for intentional illegal acts.

Legal and Financial Scope

According to available insurance filings, some providers spend a small portion of their revenue on direct legal defense. For example, two U.S. Law Shield entities operating in Florida and Virginia reportedly spent about 15% of revenue on legal expenses. In comparison, other types of insurance providers, such as medical and professional liability insurers, often spend 60% to 75% of premium revenue on claims.

USCCA estimates that it spent over $100 million in 2024 on training and firearms education. However, estimates suggest its maximum spending on legal defense coverage that year ranged between $31 million and $47 million. USCCA disputes this estimate, though it has not disclosed the exact figure. The company and its affiliated insurance provider are majority-owned by USCCA’s founder and his ex-wife.

Notable Cases

A recent Wall Street Journal article reported several incidents involving self-defense insurance claims:

• Joshua Huston, a Florida homeowner, used a firearm against an alleged intruder on his property. Initially advised to accept a plea deal by a lawyer recommended through his USCCA membership, Huston later retained outside counsel. The charges were ultimately dismissed under Florida's stand-your-ground law. USCCA’s insurer later settled a related civil lawsuit on undisclosed terms.
• David Edmondson, a business owner from California, used a firearm during a confrontation with a man who allegedly attempted to break into his van while he was sleeping inside. A U.S. Law Shield-appointed attorney represented Edmondson, and no charges were filed in the case.
• Kayla Jean Giles Coutee, a Louisiana resident, purchased a firearm and a USCCA policy shortly before fatally shooting her estranged husband during a child custody exchange. USCCA initially paid a legal retainer but later denied further coverage, stating the incident did not qualify as self-defense. Giles Coutee was convicted of second-degree murder and is currently serving a life sentence; her case is under appeal.

Industry Outlook

While self-defense insurance remains controversial in some legal and political circles, membership continues to grow. Providers have focused on education, training, and legal support as part of their services. The industry remains loosely regulated, and classifications of these products vary by state.

Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com. 

The insurance industry is losing access to a long-standing tool for gauging the economic toll of extreme weather events. The National Oceanic and Atmospheric Administration (NOAA) has announced it will no longer update its Billion-Dollar Weather and Climate Disasters database, a move that comes amid broader federal budget cuts to climate initiatives.

A Trusted Resource Comes to a Close

Since its inception in 1980, NOAA’s Billion-Dollar Disasters database has documented 403 events that each caused at least $1 billion in economic damage. The tool has become a trusted benchmark not only for policymakers and the public but also for insurers tracking the scale and frequency of catastrophic weather events.

NOAA’s announcement, made quietly on May 8 via a “notice of change” on its website, cited “evolving priorities, statutory mandates, and staffing changes” as reasons for the discontinuation. Although the data will remain archived and accessible online, it will no longer be updated going forward.

The Role of the Database in the Insurance Sector

Mark Friedlander of the Insurance Information Institute emphasized that while NOAA’s data is valuable, the property and casualty (P&C) insurance industry has independent mechanisms for tracking covered losses. Importantly, NOAA’s database includes total economic losses, not just insured losses, providing a broader perspective on the financial burden of disasters.

Even without NOAA’s updates, Friedlander reassured stakeholders that this change will not affect the availability of property insurance or how storm claims are processed. “Insurers will continue to act as financial first responders,” he said, highlighting the industry’s role in disaster recovery efforts.

A Sign of Broader Climate Funding Cuts

NOAA’s decision is part of a larger trend of reduced federal support for climate-related programs. The White House’s April budget proposal included a plan to remove an entire wing of NOAA, slashing the agency’s funding by nearly $1.7 billion, or 27%. On the same day as the database announcement, FEMA’s acting director, Cameron Hamilton, was ousted after opposing similar cuts and defending the agency’s preparedness efforts for the upcoming hurricane season.

What Happens Next?

The loss of regular updates from NOAA’s disaster database leaves a gap in a widely cited, government-backed source of economic data on climate catastrophes. While the insurance industry has its own data sources, NOAA’s reports helped contextualize total losses, offering insight into the scale of damage beyond just the insured segment.

This development may prompt insurers, reinsurers, and risk analysts to rely more heavily on private and proprietary data platforms. It could also renew calls for public-private collaboration to ensure transparency and consistency in climate risk modeling, especially as extreme weather events grow more frequent and costly.

Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

Global banking regulators are stepping up efforts to deepen their understanding of climate-related financial risks, with renewed attention to the implications of extreme weather events on financial stability. This comes as part of a broader debate among global policymakers regarding how climate change should intersect with central banking and financial regulation.

A Renewed Priority from the Basel Committee

On Monday, the oversight body of the Basel Committee on Banking Supervision — an influential international forum for banking regulators — met to review progress on climate-related risk initiatives. According to a statement from the Bank for International Settlements, the group agreed to prioritize efforts that examine how extreme weather events could impact financial institutions and broader markets.

As part of this initiative, the committee announced plans to release a voluntary disclosure framework on climate-related financial risks. While the Basel Committee does not have formal regulatory authority, its guidelines are widely adopted and have a significant impact on national banking regulations worldwide.

Diverging Regulatory Approaches

The move reflects growing momentum in some parts of the world to integrate climate change into financial oversight. European regulators, in particular, have taken an assertive stance. The European Central Bank has made climate risk management a core supervisory priority, and national regulators across the EU continue to expand their oversight in this area.

In contrast, the U.S.'s new administration has shown increasing reluctance to embed climate considerations into financial regulation. The U.S. Federal Reserve has conducted preliminary analysis on climate risks but maintains a limited scope for its involvement. Federal Reserve Chair Jerome Powell has reiterated that the Fed’s mandate restricts it from playing a central role in environmental policymaking.

Recent developments underscore this divergence. In January, the Federal Reserve withdrew from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) — an international body dedicated to addressing climate-related financial risks. The U.S. Treasury Department’s Office of the Comptroller of the Currency followed suit in March by stepping back from a joint climate risk framework, citing concerns over regulatory burdens and overlap.

Ongoing Debate and Policy Implications

The differing approaches between U.S. and European regulators reflect a broader transatlantic divide on environmental, social, and governance (ESG) priorities. In the U.S., political resistance to ESG-related policies has grown — with debates encompassing topics from fossil fuel regulation to corporate diversity initiatives.

Despite this pushback, analysts suggest that the Basel Committee's initiatives will continue to influence global standards. The committee's work is more closely aligned with European and British regulatory models — where climate risk is increasingly being woven into supervisory expectations for banks and insurers alike.

Implications for the Insurance Industry

For the insurance sector, the intensified global focus on climate risk presents both challenges and opportunities. Insurers are already on the front lines of managing the financial consequences of extreme weather events. As global regulators push for greater climate risk transparency and scenario analysis, insurers may need to expand their risk modeling capabilities and reevaluate underwriting practices.

The ongoing policy divergence also means insurers operating across jurisdictions will need to navigate a complex regulatory environment, balancing different disclosure expectations and risk assessment frameworks.

As the Basel Committee advances its work, the insurance industry will be watching closely to assess how future standards may shape long-term strategies for climate resilience, regulatory compliance, and capital planning.

Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

More than 400 independent agents, industry leaders, carrier and vendor partners gathered last week at Legacy West in Plano for the second annual Lone Star Summit, hosted by Texas’ four SIAA master agencies — Texas Agency Alliance (TAA), South Texas Agency Alliance (STAA), Insurance Agents Alliance of Texas (IAAT), and CoVerica Agency Alliance. The multi-day event, held April 30–May 2, featured educational sessions, collaborative discussions, and recognition of outstanding member agencies, reinforcing the Summit’s role as a valuable forum for driving independent agency growth and success.

Celebrating Community and Emerging Talent

A highlight of the conference was Thursday’s Community Impact Luncheon, where attendees turned their attention to giving back and shaping the industry’s future. Rodney Watkins, President of IAAT, was recognized with the 2025 Community Star Award for his commitment to community and advancing young talent. Watkins has worked closely with Liberty Mutual & Safeco to help implement the Emerging Talents Program (CISR High School Program) at Mineola High School, administered by the Insurance Risk & Education Alliance. The luncheon also featured Mineola High School students and the school principal, who joined the stage to share their firsthand experiences with the program — highlighting the meaningful impact of exposing young people to the fundamentals and career possibilities in insurance.

Recognizing Member Agency Achievements

The Summit also celebrated the success of member agencies across Texas. Awards were presented for top premium growth, rising stars, and agency leadership — highlighting the continued strength and performance of independent agencies in a competitive market. Through networking, knowledge sharing, and celebration, Lone Star Summit 2025 reflected the strength and forward momentum of Texas’ independent agency community. About SIAA SIAA is The Agent Alliance – the nation's leading network of starting, growing, and evolving independent insurance agencies. Leveraging a platform of strategic partners, $16.7 billion in premiums, and 49 Master Agencies, the Alliance supports and inspires member agents so they can continuously adapt to an ever-evolving industry and achieve long-term success. SIAA members benefit from the resources of scale and the freedom of independence. Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com. 

The housing market offered a rare glimmer of hope for buyers in early 2025: Newly built home prices dropped in nearly one-third of the nation’s top 100 metro areas, according to Realtor.com®’s New Construction Quarterly Report. This shift is particularly encouraging for first-time buyers and those struggling to keep pace with rising mortgage costs.

Smaller Homes, Lower Prices — And Some Incentives, Too

Builders have been actively addressing affordability by downsizing new builds and trimming prices. According to Realtor.com Chief Economist Danielle Hale, “Builders are delivering smaller homes at lower prices and often offering financial incentives that make monthly payments more manageable.”

In total, 55 of the largest 100 U.S. metros saw new-home sizes shrink year over year, and in 26 of those markets, median prices fell as well. Even in six areas — like Akron, OH; Baltimore; Dallas; Greenville, SC; Madison, WI; and Orlando, FL—prices declined despite homes getting larger.

The most dramatic price drop was in Little Rock, AR, where the median new-home list price fell 13% compared to the first quarter of 2024.

A National Trend Toward Lower Asking Prices

The decline isn’t limited to regional markets. Nationally, the median list price for a newly built home was $448,393 in Q1 2025, down 0.3% from a year earlier and 1.3% from Q1 2023. Since the peak in Q3 2023, new-home asking prices have trended steadily downward.

By contrast, prices for existing homes have continued to rise, reaching a median of $394,963 in Q1—up 1.4% from last year and 5.1% from 2023. In an interesting turn, March 2025 marked the first time the median sales price of new homes dipped below that of existing homes, as buyers leaned into the more affordable new-home inventory.

Budget-Friendly New Homes Are in Demand

In March, the median sales price for new single-family homes was $403,600, down nearly 8% from the year before. Significantly, half of all new-home sales were under $400,000, a notable increase from 43% the previous year. This shift shows that today’s buyers are actively seeking out lower-priced properties.

This buyer preference aligns with the broader effort by builders to serve price-conscious segments amid high borrowing costs and inflationary pressures.

Tariffs May Reverse Recent Progress

While the current trend offers hope, clouds may be forming on the horizon. According to Realtor.com, newly announced tariffs—including a proposed jump in Canadian lumber duties from 14% to 34% — could add nearly $11,000 to the cost of a new home.

“Builders’ costs will increase, which means that the price of homes will increase, and the affordability challenges facing prospective homebuyers will only worsen,” said Realtor.com Senior Economist Joel Berner.

Builders and buyers alike will need to monitor tariff developments closely, as they could undercut affordability gains just as the market shows signs of becoming more buyer-friendly.

Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

The Midwest Division of the Insurance Industry Charitable Foundation (IICF), a unique nonprofit organization dedicated to helping communities and enriching lives, raised $770,000 at its fourteenth annual IICF Midwest Gala in Chicago. This year’s event, debuting a new theme of Where Hope Grows, hosted 450 insurance professionals and nonprofit leaders for an evening celebrating the industry’s charitable impact while raising funds for nonprofit organizations across the Midwest region. As part of the celebration, Kelley J. Kinsella, Regional Executive Officer for Chubb’s Midwest Region, was recognized with the 2025 IICF Midwest Trailblazer Award for philanthropic and industry leadership. “I’m honored to receive this award from the IICF and my insurance colleagues, and thankful for the opportunities to serve our communities together, which is personally meaningful to so many of us,” said Kinsella. “The uniqueness of IICF is uniting the industry and extending the enriching philanthropic initiatives of our own companies, and together we’re making a positive and lasting impact.” Proceeds from the IICF Midwest Gala 2025: Where Hope Grow benefit the IICF Midwest Community Grants Program, which supports regional charities focused on education, safety and health. IICF’s Midwest Division has granted more than $5.5 million to over 275 nonprofits since its inception in 2012. Gala Chair Bob Eckart, EVP, Commercial Insurance Leader, and John Lewis, SVP, Unit Leader, representing the IICF Heartland Chapter Board Company Lockton, were also recognized for their leadership and fundraising success of the 2025 Midwest Gala. Guests also heard from Cara Chicago, the featured nonprofit of the evening and an IICF Community Grant recipient. Since 1991, the mission of Cara Chicago has been to eradicate poverty and create hope, jobs, and opportunity. “We are privileged each year to host leaders of the Midwest insurance community in celebration of industry philanthropy and grateful for their tremendous generosity,” said Marcie Stephan, Chair of the IICF Midwest Division Board of Directors and Senior Vice President at Berkshire Hathaway Specialty Insurance. “Along with raising significant funding, which directly benefits our local nonprofit partners, the IICF Midwest Gala also offers a wonderful opportunity to celebrate and advance the impact the industry is making together, through IICF leadership, grants, and volunteerism.” Proceeds of the IICF Midwest Gala 2025 will fund IICF Community Grants awarded throughout the region. Previous IICF Midwest Community Grant recipients can be viewed here. “Our new gala theme, Where Hope Grows, embodies our vision for brighter futures and opportunities for underserved communities in several Midwestern states,” said Kelly Hartweg, Executive Director of the IICF Midwest Division. “We were excited to grow our reach earlier this year by launching the IICF Minnesota Chapter and thrilled to welcome these new leaders at our annual gala.” Communities throughout the Midwest are served by the IICF Midwest Division and Associate Boards based in the Chicago area as well the Ohio and Heartland (Kansas and Missouri) Chapters, along with the newly established IICF Minnesota Chapter, serving the Twin Cities area. The IICF Midwest is one of six divisions of the Insurance Industry Charitable Foundation, with four based in the US and two international divisions, based in the UK and Canada. The foundation has granted more than $50 million globally since its founding more than thirty years ago in 1994. The IICF Midwest Gala 2025: Where Hope Grows was made possible through generous insurance industry support including Presenting Sponsors: Chubb and Lockton; Platinum Sponsors: Amwins, Aon, Burns & Wilcox, CNA, CRC Group and RT Specialty; Gold Sponsors: Berkshire Hathaway Specialty Insurance, Crum & Forster and Seneca, Marsh and Zurich, along with many other event sponsors. For more information regarding IICF’s Midwest Division and how to become a board company, please visit IICF Midwest Division at IICF.org or contact IICF Midwest Executive Director Kelly Hartweg at (773) 991-2149 or khartweg@iicf.org. About the Insurance Industry Charitable Foundation (IICF) The Insurance Industry Charitable Foundation (IICF) is a unique nonprofit that unites the collective strengths of the insurance industry to help communities and enrich lives through grants, volunteer service, and leadership. Established in 1994, IICF has served as the philanthropic voice and foundation of the insurance industry for more than thirty years, contributing $50 million in community grants along with over 370,000 volunteer hours by more than 130,000 industry professionals. IICF reinvests locally where funds are raised, serving hundreds of charities and nonprofit organizations, for maximum community impact. IICF is a registered nonprofit organization under section 501(c)(3) of the IRS code. Learn more at www.iicf.org or follow us on social media at: LinkedIn and Instagram. Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.